Technical Studies Reference

Average True Range

This study calculates and displays a Moving Average of the True Range.

Let the Input Length be denoted as \(n\), and let \(TR\) be a random variable denoting the True Range. Then we denote the Average True Range at Index \(t\) for the given Length as \(\overline{TR}_t(n)\), and we calculate it in terms of a Simple Moving Average for \(t \geq n - 1\) as follows.